Blockchain in construction — it’s all about data, trust and productivity

  • The construction industry grapples with a highly fragmented supply chain of contractors, designers, materials and equipment manufacturers, suppliers, and transport providers.
  • The additional resources required to implement projects have reduced sector productivity.
  • Blockchain technology can deliver savings through the reduction of intermediaries and intermediate steps in a process.

Governments have often used the construction industry to kick-start the economy in times of recession, to sustain growth and stimulate employment. In Australia, construction generates over $150 billion in revenue (about eight per cent of the GDP) and employs over a million white‑collar and blue-collar workers. But a new challenge has emerged as the construction industry modernises — a ‘new-collar' workforce, embracing new technologies and skills, must now be prepared to lead a modern construction sector.

Challenges for the industry

The construction industry faces many challenges. Infrastructure projects are complex, and stakeholders must manage projects through a highly-fragmented supply chain of contractors, designers, materials and equipment manufacturers, suppliers, and transport providers — all while meeting a raft of regulatory requirements. Overlaying this are complex contractual frameworks to deal with risk allocation and project management, along with performance security and insurance requirements. And increasingly, project financiers and insurers are calling for more robust performance assurances.

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